“Cloud Is Not Negatively Impacting Colocation, It’s Supplementing It”

LOS ANGELES, CA — The opening session of CapRE’s Seventh Annual Southwest Data Center Summit: The Telecom Evolution was a Keynote Presentation by Jason Shepard, Founder & Managing Principal at Cresa MCS. Findings from Cresa MCS Annual Colocation Survey provided a snapshot in to the state of the industry, and as part of that discussion, Shepard provided some high level results about the state of Hybrid Colocation. “Let’s talk about Cloud and hybrid Colocation,” began Shepard. “I asked Zane Alsabery, CEO, Alchemy Communications, this morning, hey, do you have Cloud solutions available to your customers in your data center facility? Yes.” According to Shepard, every single provider that his firm spoke to indicated that they have Cloud solutions available to their customers within their facilities. “Why is this important?” he asked the room. “A client I mentioned earlier, who said they were looking for 10,000 square feet and 20 cabinets, their monthly colo spend is about, I want to say, $15,000-$18,000 a month. It will fluctuate. But on top of that, they’re going to be paying, for a 10-gig point to point connection, maybe $2500 a month, per point to point connection.” :If they have multiple point to point connections, their telecom spend, on top of the data center spend, is going to be $30,000 - $40,000 a month,” he asserted. “If we could go to facilities that have an eco-system of Cloud solutions on-site, I don’t need to purchase…